The Evolution of Corporate Social Responsibility
By Casey Schoff
January 29, 2024
What is Corporate Social Responsibility (CSR)?
Before diving into the complex history and evolution of Corporate Social
Responsibility (CSR), it is important to understand what the term even
means. CSR has meant very different things at different points in time, but at
its core it refers to “business self-regulation with the aim of being socially
accountable.”
Origins of CSR
While widespread adoption of CSR has been relatively recent, the concept
itself has been around for over a century. It has its roots in the late 1800s,
when the rise of philanthropy combined with deteriorating working
conditions made some businesses reconsider their current production
models.
The term “Corporate Social Responsibility,” however, was not coined until
1953, when American economist Howard Bowen published Social
Responsibilities of the Businessman. In this book, Bowen identified the great
power of corporations and recognized that their actions had a tangible
impact on society. Therefore, he argued, businessmen have an obligation to
pursue policies that are beneficial for the common good.
CSR Today: The Way to Do Business
Today, businesses are missing out if they aren’t participating in CSR. It has
become an integral part of doing business and is increasingly driving
consumer choice. For instance, nearly 90% of consumers would purchase a
product because a company supported an issue they care about, while 75%
would refuse to buy a product if the company had a different stance on an
Issue. CSR is also a big factor in attracting talented employees, as people
want to work for a company that upholds strong values. Further, a
comprehensive CSR program can have the benefits of “increased brand
reputation and credibility, improved risk and supply chain management, cost
savings from efficiency improvements, and increased revenue.” Companies
are thus discovering that CSR is not only better for society, but in many
cases better for business as well.
By Casey Schoff
January 29, 2024
What is Corporate Social Responsibility (CSR)?
Before diving into the complex history and evolution of Corporate Social
Responsibility (CSR), it is important to understand what the term even
means. CSR has meant very different things at different points in time, but at
its core it refers to “business self-regulation with the aim of being socially
accountable.”
Origins of CSR
While widespread adoption of CSR has been relatively recent, the concept
itself has been around for over a century. It has its roots in the late 1800s,
when the rise of philanthropy combined with deteriorating working
conditions made some businesses reconsider their current production
models.
The term “Corporate Social Responsibility,” however, was not coined until
1953, when American economist Howard Bowen published Social
Responsibilities of the Businessman. In this book, Bowen identified the great
power of corporations and recognized that their actions had a tangible
impact on society. Therefore, he argued, businessmen have an obligation to
pursue policies that are beneficial for the common good.
CSR Today: The Way to Do Business
Today, businesses are missing out if they aren’t participating in CSR. It has
become an integral part of doing business and is increasingly driving
consumer choice. For instance, nearly 90% of consumers would purchase a
product because a company supported an issue they care about, while 75%
would refuse to buy a product if the company had a different stance on an
Issue. CSR is also a big factor in attracting talented employees, as people
want to work for a company that upholds strong values. Further, a
comprehensive CSR program can have the benefits of “increased brand
reputation and credibility, improved risk and supply chain management, cost
savings from efficiency improvements, and increased revenue.” Companies
are thus discovering that CSR is not only better for society, but in many
cases better for business as well.
